Evenlode Income investors rewarded with management charge cut after stellar performance and inflows

Evenlode has announced a reduction in annual management charge (AMC) on the Elite Rated Evenlode Income fund as of 1 November 2017.

The annual management fee will fall from 0.95% to 0.90%. This adds yet another attractive dimension to the fund, which is a top quartile performer within the UK All Companies sector over three and five years, and currently offers a good level of income yielding 3.30%1.

The fund is now £1.4bn in size1, a massive jump from the £318m managed just two years ago2. Evenlode is passing on the benefits of these economies of scale with a management fee reduction.

The fast growth in popularity of the fund has been justified so far, with the fund returning an impressive 180.79%3 since its launch in October 2009.

The fund managers take a long-term view, believing that the market underestimates the value of high quality businesses because of its obsession with short-term factors. The managers have the flexibility to deviate from the benchmark, ignore entire sectors and invest in overseas stocks. The fund was particularly effective during the post-Brexit period, when it successfully positioned itself in large, high quality, defensive UK businesses which earn a lot of their revenues overseas, benefiting from the fall in the pound.

FundCalibre managing director Darius McDermott said: “We are pleased to see another company reducing fees to offer better value for their clients. It’s good to see Evenlode sharing their success with investors.”

This is the second positive fund fee announcement from Evenlode, which in April 2017, illustrated their commitment to fee transparency by announcing that any investment research costs were covered by the company as of January 2017.

1Source: FE Analytics

2Source: TB Evenlode Income fund factsheet, October 2015

3Source: FE Analytics, total returns in sterling, 10 October 2009 to 24 October 2017

The views of the author and any people interviewed are their own and do not constitute financial advice. However the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Before you make any investment decision make sure you’re comfortable and fully understand the risks. If you invest in fund or trust make sure you know what specific risks they’re exposed to. Past performance is not a reliable guide to future returns. Remember all investments can fall in value as well as rise, so you could make a loss.